I don't remember what unregistered fraps did. I guess it added watermark to thing you recorded. And also I'd try Dxtory. I have some expirience with Fraps and I know it just completly devours system resources.
For editing there is some options, but you will probably end up with Windows Movie Maker since it's free. There is also Sony Vegas (you can get trial, adds watermark) or Adobe Premiere (probably has trial). 2 last ones are more complex and professional.